Resorts World NYC to take the first license?
Resorts World New York City have submitted the largest of all the bids for a New York casino license and are ready to go once given the green light.
The proposed resort, which is estimated to cost approximately $5.5bn, was recently presented to the six members of the Community Advisory Committee (CAC) and is the biggest in terms of site size, build area and casino floor area out of all the proposed bids to date.
The 73-acre aqueduct site boasts a host of proposed impressive features including 6,000 slot machines, 800 gaming tables, a 7,000 seat arena and more than 2,000 hotel rooms.
Robert DeSalvio, president of the Genting Americas East, said: “What the CAC have heard is a vision for a transformative project that will be a game-changer for this borough, the city and the state.
“Since Resorts World was granted operations of the aqueduct site in 2010, we have sought to be a neighbour that Queens deserves, providing 1,000 good union jobs, invested millions of dollars into our neighbors and built everlasting bonds with the community.
“But we also owe them a promise to do more in every sense of the term, and today’s proposal lays out just how we will.”
Why Resorts World NYC is a top contender
In the presentation, Resorts World stated that should their resort get the license, it would create 24,000 jobs as well as curate hundreds of millions of dollars in tax revenue for the state.
As is the economic benefit, the resort is almost good to go. The company stated they’re ready to start construction immediately after being granted a license, should their pitch be the chosen one.
Strategy Chief and Legal Officer at Resorts World New York City, Kevin Jones, stated: “When it comes to completion and operational risks, Resorts World New York City stands uniquely as almost risk-free.”
There’s already a good relationship between Resorts World and the New York state, as they are the largest taxpayer in the state with the 15-year operation of the Aqueduct racetrack. During that time, they’ve contributed over $4.5bn in tax revenues.
As well as the good relationship with authorities, there seems to be a healthy relationship with those who are already employed at the venue. Resorts World Vice President Patricia Griffith informed the committee that over half of the company’s current 10,000 employees are local and paid above the average wage in the area.
“Our team members’ median wage is $39 an hour,” confirmed Griffith. “When you factor in benefits, that compensation nearly reaches $150,000 a year.
“We have existing collective bargaining agreements and a signed project labor agreement in place. We are the only bidder in this application process that can say that.”
Who is likely to get a NYC casino license?
Currently, eight resorts are vying to build New York City’s very first casino. With up to three licenses likely to be granted, some of the biggest developers in the United States are hoping to get approval.
They now must wait to hear whether each individual proposal can progress to the next stage. A final decision on which casinos will get approval is expected by the end of the year.
However, some of the proposals are already struggling, with Bally’s $4bn Bronx casino project looking dead in the water after lawmakers voted against land-use change on the site they would use.
Each license will cost $500m but those lucky enough to get to pay that could be earning as much as $4bn in revenue per year, which justifies why so many companies are so eager to build a land-based casino in the United States’s largest city.
As well as Resorts World and the Bally’s Bronx proposals, there are bids from Empire City Casino, The Avenir, Caesars Times Square, Coney Island, Metropolitan Park and Freedom Plaza.
What are the key dates?
All of the applications must have completed all land use, zoning and environmental reviews by September 30, which is when the commissions must hold their final votes. All proposals, which need to include a proposed tax rate and supplementing materials, must send their final documents to the Gaming Facility Location Board (GFLB) for consideration, who will make their final decision by December 30.
GFLB Chair, Vicki Been, explained why the timeline is so important. She stated: “This roadmap gives communities ample opportunity to have their voices heard, establishes a level playing field among multiple competitors, and affords serious applicants the opportunity to participate in a lucrative and transformational process.”
Once that’s complete, the Gaming Commission will then issue the licenses by December 30, 2025.
Who are the favorites?
With so many moving parts to each of the licenses, it’s hard to know what projects will get the green light. Two of the projects, the Resorts World (which is mentioned above) and Empire City are both expansions of existing ‘racinos’ sites.
These venues, which are currently used as racetracks with gambling available onsite, have long appeared to be the favorites to get a license.
One key factor though that will help casinos get a license is how they will involve and benefit the local residents and economy within NYC. For example, the Caesars Palace NYC proposal promises to give local people investment opportunities worth as little as $500.
Each proposal makes its own promise on how it will benefit local people but those that have the best ideas and best communicate them with the authorities are likely to be given a license.
However, that proposal alone has faced opposition from prominent organizations such as teachers unions, theatre groups and neighborhood associations – who have all joined a coalition called ‘No Times Square Casino’.
That goes to show that whatever these companies include in their proposal, there will always be opposition. As such, the political pressure on decisionmakers to grant licenses to the ‘right proposal’ is huge. We await their decision with great interest.
